Vat audit of 2012-13

Save Share

This query is : Resolved

NITIN SINGH (Querist)

19 September 2013 please tell me how to check the sales bill and purchase bill in vat audit 2012-13. what is form C and Form H please explain me in Maharashtra
?

CA Pallav Singhania

CA Pallav Singhania (Expert)

19 September 2013 C-Form is a certificate issued as proof of CST Purchase. This form can be obtained from sales tax dept. The seller has to obtained this form – C from the purchaser and show it to the sales tax dept to get tax exemption. In case if the purchaser does not release the Form – C the seller has to pay the Tax at the time of sales tax assessments.

If Mr A Registered Dealer in Hyderabad (AP) wants to purchase goods from Mr B a registered dealer in Mumbai.Mr B who is selling the goods will charge VAT @ 4% or 12.5% on the goods if Mr A issues him “C” Form then Mr B should Charge him CST @ 2% so Mr A is SAving Tax.

It will be safe for the seller if he can get a D.D. for the tax amount of the goods which is sold to the purchaser. Because sometime the purchaser fail to provide the form – C to the seller due to unknown reasons, at this time this D.D. which is collected will be off much helpful to the seller.

CA Pallav Singhania

CA Pallav Singhania (Expert)

19 September 2013 H-Form is a certificate issued as proof of Export. This form can be obtained from sales tax dept. When a exporter purchases the material from the sellers and exports then the exporter has to issue
the Form –H to the seller from whom the goods are purchased. The seller has to obtained this form – H from the exporter and show it to the sales tax dept to get tax exemption.

Along with the form – H
the seller has to collect the Bill of lading (B.L) as proof of export. In case if the exporter does not release the Form – H along with the B.L the seller has to pay the Tax at the time of sales tax assessments.

NITIN SINGH

NITIN SINGH (Querist)

19 September 2013 thank u sir?

NITIN SINGH

NITIN SINGH (Querist)

19 September 2013 but can u tell me what should be check in sales bill and purchase bill for vat audit ?

CA Pallav Singhania

CA Pallav Singhania (Expert)

19 September 2013 First check the type of Goods and the Percentage of VAT Being Charged upon them. Then you can proceed with verifying the accounting of VAT Credits( VAT on Purchase of Raw material) and Set Off (VAT on Sale of FG) and if any balance is there on the Credit side, check if the balance is being properly disclosed in the TB.

If there is any balance on the payment side, check that the amount is paid off or if not yet paid proper steps have been initiated to pay off the VAT Payable.

Also check the if Monthly returns are being filed as per the schedule and there are no discrepancy as to the Dates of payment of the same.

In case there is any discrepancy, Inquire into the matter as to why that has happened. Also check if any C Forms have been Issued so that it may reduce the VAT/ CST Rates on the goods.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now